Bushveld Minerals Limited (LON:BMN), a mineral project development company with a portfolio of vanadium and coal assets in Southern Africa and an investment in tin, has today provided the following update about Lemur Resources (“Lemur”). Lemur, Bushveld’s coal and energy subsidiary that is developing an integrated thermal coal mining and Independent Power Producer asset in Madagascar, has concluded an open market Request for Proposals (“RFP”) process in October 2017 for all studies and services required to complete the Bankable Feasibility Study (“BFS”) for the Imaloto Power Project in Madagascar (“the Project”).
In addition, following Anthony Viljoen’s appointment as Chief Executive Officer of AfriTin Mining, Prince Nyati, previously Project Head of Lemur, has been appointed as Chief Executive Officer of Lemur, effective from 9 November 2017. Anthony will remain on the Board of the Company as a non-executive director.
Commenting on these developments, Fortune Mojapelo, CEO of Bushveld Minerals Limited, said: “The appointment of an owner’s engineer and other technical advisors is an important step towards the completion of the BFS for the Imaloto Power Project. The nomination of an environmental advisor demonstrates our commitment to comply with the social and environmental impact regulations in Madagascar. More importantly, the Social Environmental Impact Assessment (SEIA) will pave the way for us to proceed with major works at our project site.
“In addition, to the above, our discussions with Jiro sy Rano Madagascar (JIRAMA) regarding a long term Power Purchase Agreement (PPA) are at an advanced stage and given the support we have received from both the Government and JIRAMA so far, we are confident that a PPA will be concluded soon.
Overall, these new developments will ensure that the Project remains on course and they will also reinforce our commitment to delivering reliable, affordable base load power to the people of southern Madagascar and in so doing, help to kick-start the unprecedented economic development activities in the region. Furthermore, I wish to congratulate Prince on his new appointment.”
Highlights:
· Following the conclusion of the RFP process, Lemur has appointed Advisian / Worley Parsons as the Owner’s Engineer for the Project. Advisian’s key roles will be to provide review and oversight during the bankable feasibility phase regarding technical, financial, and commercial aspect of the project, including the interface with Lemur’s technical partner, Sinohydro Corporation Limited (“Sinohydro”) on the BFS;
· In addition, Worley Parsons is assigned to oversee completion of the SEIA in accordance with the laws of Madagascar and IFC standards. Worley Parsons will shortly commission a Malagasy based specialist to carry out carry out the SEIA. The selection process for a local SEIA specialist will be concluded in November 2017;
· Energy System Planning (ESP) has been appointed as technical advisors to finalize transmission routing and mapping as well as associated load studies on the project;
· Lemur is in advanced discussions with Madagascar state-owned water and utility company JIRAMA, over a long-term PPA, with most of the key terms agreed.
